Confidentiality & Overseas Accounts

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Confidentiality & Overseas Accounts

Is there any assurance that tax authorities or other interested person, if desired, will not be able to get information about who is the real owner of the offshore company?

When registering an offshore company, which has Nominee Directors and shareholders, the public authorities of the country of registration are not provided with information about the beneficial owner of the company (the Beneficiary). Of course, under court ruling, authorities may request this information from the company agent. In addition, according to the OECD Convention on the Automatic Exchange of Financial Information on tax matters, many jurisdictions in 2017 will automatically exchange such information with other jurisdictions on an annual basis. Therefore, to obtain information about the Beneficial Owner (Beneficiary) of the tax authorities will be able to.

What is a Nominee Shareholder?

A Nominee Shareholder is a nominated individual who is not the Beneficial Owner of the property in relation to a company acting in the best interest of the company and under direct instruction to do so by company’s actual owner (the beneficiary), which governs affairs regarding the trust agreement. A Nominee Shareholder’s role is to maintain confidentiality of the beneficiaries.

What is a Nominee Director?

A Nominee Director is an individual who is nominated, not for the actual management of the company, however for acting on the instructions of the beneficiary to which it is associated contractual relationship. Nominee Director Service is used to allow the beneficiary to remain anonymous and avoid conflicts of interest in some cases. Additionally, in some cases there is a requirement for specifying a Nominal Director. For instance, in order to take advantage of the agreement on avoidance of double taxation between the UK and Cyprus, it is necessary that a company registered in Cyprus, has the status of a resident of such jurisdiction, which is achieved by the appointment of the Director, who must be a resident of Cyprus. In contrast with the term Nominee Shareholder, Nominee Director is not legally correct, as the de jure Director of the company in any circumstance, maintains all rights and responsibilities for the company’s activities as provided by law and the constituent documents of the company.

Disclose the information on the Directors and Shareholders of an offshore company to local authorities?

Information about the Directors and Shareholders is published in the State Register of Companies for registration, and in most jurisdictions today such information is public knowledge.

Does Eltoma Corporate Services provide Nominee services after opening an offshore company?

Yes, upon request we can provide services for appointing Nominee Shareholders and Directors on your company’s behalf. For more details about how we can assist.

What is the scope of confidentially information for an overseas company?

As a general rule of statutory compliance documents for an overseas company must be listed as public knowledge. However, we can also prepare private documents to authorised agents, such as the Shareholders Agreement which does not have to be filed with the registrar of companies. This and other questions connected with information confidentiality you can discuss with one of our experts. We will be glad to answer all your questions.